1. Except as otherwise provided in this section, a bank may go
into voluntary liquidation pursuant to the provisions of NRS 78.580
or 86.491 .
2. If the voluntary liquidation of the bank results from a vote or
agreement of the stockholders or members of the bank, a certified copy of
all proceedings of the meeting at which that action is taken, verified by
the oath of the president or a manager, must be transmitted to the
Commissioner for his approval. If the Commissioner approves the
liquidation, he shall issue to the bank, under his seal, a permit for
that purpose. No permit may be issued by the Commissioner until he is
satisfied that provision has been made by the bank to satisfy and pay off
all depositors and all creditors of the bank. If he is not satisfied, the
Commissioner shall not issue a permit, but he may take possession of the
bank, its assets and business, and liquidate the bank in the manner
provided by this chapter.
3. When the Commissioner approves the voluntary liquidation of a
bank pursuant to subsection 2, the directors or managers of the bank
shall cause to be published, in a newspaper in the city, town or county
in which the bank is located, a notice that the bank is closing its
affairs and going into liquidation, and that its depositors and creditors
are to present their claims for payment.
4. When any bank is in the process of voluntary liquidation, it is
subject to examination by the Commissioner, and the bank shall furnish
such reports, from time to time, as may be called for by the Commissioner.
5. All unclaimed deposits and dividends remaining in the hands of
the bank are subject to the provisions of this chapter.
6. Any bank that is in the process of voluntary liquidation may
sell and transfer to any other state or national bank all or any portion
of its assets of every kind upon such terms as may be agreed upon and
approved by the Commissioner and by a majority vote of the bank’s board
of directors or of its managers. A certified copy of the minutes of any
meeting at which that action is taken, under the oath of the president or
a manager, and a copy of the contract of sale and transfer must be filed
with the Commissioner.
7. If a voluntary liquidation or the sale and transfer of the
assets of any bank is approved by the Commissioner, a certified copy of
that approval under seal of the Commissioner, filed in the office of the
Secretary of State, authorizes the cancellation of the articles of
incorporation or organization of the bank, subject to its continued
existence, as provided by law.
(Added to NRS by 1971, 1001; A 1983, 1753; 1987, 1938; 1995, 494;
1997, 1004)
LIQUIDATION OF INSURED BANKS
1. After July 1, 1971, the Federal Deposit Insurance Corporation
created by the Federal Deposit Insurance Act, 12 U.S.C. § 1811, may act
without bond as receiver or liquidator of any state bank which has been
closed because of inability to meet the demands of its depositors.
2. The appropriate state authority having the right to appoint a
receiver or liquidator of a state bank may, upon such closing, tender to
the Federal Deposit Insurance Corporation the appointment as receiver or
liquidator of such bank. If the Federal Deposit Insurance Corporation
accepts the appointment, it shall have and possess all the powers and
privileges provided by the laws of this state with respect to a receiver
or liquidator, respectively, of a state bank, its depositors and other
creditors, and shall be subject to all the duties of such receiver or
liquidator, except insofar as such powers, privileges or duties are in
conflict with the provisions of the Federal Deposit Insurance Act.
(Added to NRS by 1971, 1002)
Upon the acceptance of the appointment as
receiver or liquidator by the Federal Deposit Insurance Corporation, the
possession of and title to all the assets, business and property of such
bank of every kind and nature shall pass to and vest in the Federal
Deposit Insurance Corporation without the execution of any instruments of
conveyance, assignment, transfer or endorsement.
(Added to NRS by 1971, 1002)
Among its other
powers, the Federal Deposit Insurance Corporation, in the performance of
its powers and duties as receiver or liquidator, may, upon the order of a
court of record of competent jurisdiction, enforce the individual
liability of the stockholders or members and directors or managers of any
such bank.
(Added to NRS by 1971, 1002; A 1995, 495)
1. When any state bank has been closed as provided in NRS 667.035
, and the Federal Deposit Insurance
Corporation pays, or makes available for payment, the insured deposit
liabilities of such closed bank, the Federal Deposit Insurance
Corporation, whether or not it has become receiver or liquidator of such
closed bank, shall be subrogated to all rights against such closed bank
of the owners of such deposits in the same manner and to the same extent
as subrogation of the Federal Deposit Insurance Corporation is provided
for in the Federal Deposit Insurance Act in the case of the closing of a
national bank.
2. The rights of depositors and other creditors of such closed
bank shall be determined in accordance with the applicable provisions of
the laws of this state.
(Added to NRS by 1971, 1002)
1. Any state bank which is, or may hereafter be, closed on account
of inability to meet the demands of its depositors, by action of the
Commissioner, by action of a court, by action of its directors or due to
its insolvency or suspension, the Commissioner, or the receiver or
liquidator of the bank with the permission of the Commissioner, may
borrow from the Federal Deposit Insurance Corporation and furnish any
part or all of the assets of the bank to the Federal Deposit Insurance
Corporation as security for a loan from it; but where the Federal Deposit
Insurance Corporation is acting as the receiver or liquidator, the order
of a court of record of competent jurisdiction must be first obtained
approving the loan.
2. The Commissioner, or the receiver or liquidator of any state
bank with the permission of the Commissioner, upon the order of a court
of record of competent jurisdiction, may sell to the Federal Deposit
Insurance Corporation any part or all of the assets of the bank.
3. The provisions of this section do not limit the power of any
bank, the Commissioner, receivers or liquidators to pledge or sell assets
in accordance with any other existing law.
(Added to NRS by 1971, 1003; A 1983, 1754; 1987, 1939)
1. The Commissioner shall furnish to the Federal Deposit Insurance
Corporation, or to any official or examiner thereof, a copy of all
examinations made of any state bank and of all reports made by the bank.
The Commissioner shall give access to and disclose to the Federal Deposit
Insurance Corporation, or to any official or examiner thereof, all
information possessed by the office of the Division of Financial
Institutions with reference to the conditions or affairs of any state
bank.
2. Nothing in this section limits:
(a) The duty of any bank in this state from complying with the
provisions of the Federal Deposit Insurance Act, its amendments or
substitutions, or the requirements of the Federal Deposit Insurance
Corporation relative to examinations and reports; or
(b) The powers of the Commissioner with reference to examinations
and reports pursuant to the provisions of this title.
(Added to NRS by 1971, 1003; A 1983, 1755; 1987, 1940)
All books, papers and records of a bank which
has been finally liquidated must be deposited by the receiver in the
Office of the Commissioner.
(Added to NRS by 1971, 1003; A 1983, 1755; 1987, 1940; 1997, 1005)
1. Except as otherwise provided in subsections 2 and 3, after the
expiration of 10 years from the filing by the Commissioner of a final
report of liquidation of any insolvent bank, the Commissioner, with the
consent of the State Board of Finance, may destroy the records of any
insolvent bank held in the Office of the Commissioner in connection with
the liquidation of the bank.
2. If there are any unpaid dividends of the insolvent bank, the
Commissioner shall preserve the deposit ledger or other evidence of
indebtedness of the bank which refers to the unpaid dividends until the
dividends have been paid.
3. The Commissioner may not destroy any of the formal records of
liquidation or any of the records made in his office with reference to
the liquidation of any insolvent bank.
(Added to NRS by 1971, 1003; A 1983, 1755; 1987, 1940; 1997, 1005)
1. Except as otherwise provided in subsection 2, if any bank
created under the laws of this state has been or is appointed trustee in
any indenture, deed of trust or other instrument of like character,
executed to secure the payment of any bonds, notes or other evidences of
indebtedness, is taken over for liquidation by the Commissioner, by the
Federal Deposit Insurance Corporation or by any other legally constituted
authority, the powers and duties of the bank as trustee cease upon the
entry of an order of the district court appointing a successor trustee
pursuant to a petition as provided for in NRS 667.125 to 667.185 ,
inclusive.
2. If an indenture, deed of trust or other instrument of like
character that appoints a bank as trustee pursuant to subsection 1
includes a provision which provides for the appointment of a successor
trustee if the bank is taken over for liquidation, the powers and duties
of the bank as trustee cease upon being taken over by the Commissioner,
the Federal Deposit Insurance Corporation or any other legally
constituted authority and the successor trustee named, or whose selection
is provided for, in the instrument immediately assumes the duties as
trustee without appointment by the district court pursuant to NRS 667.125
to 667.185 , inclusive.
(Added to NRS by 1971, 1004; A 1983, 1756; 1987, 1941; 1997, 1005)
In all cases to which
subsection 1 of NRS 667.115 is
applicable, the district court for the county in which such indenture,
deed of trust or other instrument of like character is recorded shall,
upon the verified petition of any person interested in any such trust,
either as trustee, beneficiary or otherwise, which interest must be set
out in the petition, issue its order directing service on all interested
parties, personally or by the publication in a newspaper published in the
county, or in some adjoining county if no newspaper is published in the
county where the application is made, of a notice directed to all persons
concerned, commanding and requiring all persons having any interest in
the trust, to appear in court on a day designated in the order and
notice, not less than 30 days after the date of the order and notice, to
show cause why a new trustee should not be appointed.
(Added to NRS by 1971, 1004; A 1997, 1006)
Such notice shall be published in
the manner required by the Nevada Rules of Civil Procedure for service of
summons by publication, and shall set forth the names of the parties to
the indenture, deed of trust or other such instrument, the date thereof,
and the place or places where such instrument is recorded.
(Added to NRS by 1971, 1004)
If, upon the day fixed in the order and notice, no person appears
and objects to the appointment of a substitute trustee, the district
court shall, upon such terms as it deems advisable to serve the best
interest of all interested parties, appoint some competent person, or
corporation authorized to act as a trustee, as a substitute trustee. Such
appointed trustee shall be vested with and shall exercise all the powers
conferred upon the trustee named in the instrument.
(Added to NRS by 1971, 1004)
If, upon the day fixed in the order and
notice, objection is made to the appointment of a new trustee, the court
shall hear and determine the matter. An appeal may be taken from the
decision of the court by any party who made an appearance in the
proceeding.
(Added to NRS by 1971, 1005)
The final order of appointment of any such new trustee upon its entry
shall be recorded in the office of the county recorder in the county or
counties in which the instrument under which such appointment has been
made is recorded, and a minute of the same shall be entered by the county
recorder on the margin of the record where the original instrument is
recorded.
(Added to NRS by 1971, 1005)
The petition and the order appointing
such new trustee may include, relate to and apply to any number of
indentures, deeds of trust or other instruments, wherein the same trustee
is named.
(Added to NRS by 1971, 1005)
NRS 667.115
to 667.175 , inclusive, are in addition to and not in
substitution for any other remedy provided by law.
(Added to NRS by 1971, 1005)
If the Commissioner, the Federal
Deposit Insurance Corporation or any liquidating agent appointed pursuant
to the provisions of NRS 667.035 to
667.085 , inclusive, exercises the power
of sale set up in any mortgage, deed of trust or other written instrument
for the security of the payment of money in which any bank then in
liquidation was named trustee, the exercise of the power of sale and the
acts of resigning the trust, of the Commissioner, the Federal Deposit
Insurance Corporation or the appointed liquidating agent have the same
effect as if done by the bank named as trustee in the mortgage, deed of
trust or other instrument.
(Added to NRS by 1971, 1005; A 1983, 1756; 1987; 1941)
1. The Commissioner shall, on January 1 and July 1 of each year,
file with the Secretary of State a report showing all banks under
liquidation in the State of Nevada, the names of all auditors together
with the amounts paid to them for auditing each of those banks, and the
names of all attorneys employed in connection with the liquidation of
those banks together with the amount paid or contracted to be paid to
each of the attorneys. If any attorney has been employed on a fee
contingent upon recovery, the report must contain in substance the
contract.
2. Within 5 days after the receipt of the report, the Secretary of
State shall publish the report one time in some newspaper published in
each county in which a bank is under liquidation. If there is no
newspaper published in the county, the Secretary of State shall post a
copy of the report at the courthouse door in the county.
(Added to NRS by 1971, 1005; A 1983, 1756; 1987, 1941)
REOPENING AND REORGANIZATION
When the
Commissioner or the Federal Deposit Insurance Corporation has taken
possession of any bank, the bank may, with the consent of the
Commissioner, resume business upon such terms and conditions as may be
approved by the Commissioner and the Federal Deposit Insurance
Corporation.
(Added to NRS by 1971, 1005; A 1983, 1757; 1987, 1941)
1. When any bank is authorized to dissolve and has taken the
necessary steps to effect dissolution in accordance with the laws of this
state or the laws of the United States, but before actual dissolution, a
majority of the directors or managers of the national or state bank, upon
authority in writing of the owners of two-thirds of its stock or
two-thirds of the members’ interests and with the approval of the
Commissioner, may execute articles of incorporation or organization as
provided in this title for the organization of a new bank. The articles
must further set forth the authority derived from the stockholders or
members of the national or state bank.
2. Upon the filing of articles of incorporation or organization in
the same manner as provided for the organization of new banks, the
reorganized bank is a bank under the laws of this state. Upon
reorganization, all assets, real and personal, of the dissolved national
or state bank, by operation of law, vest in and become the property of
the reorganized state bank, subject to all liabilities of the national or
state bank existing before the reorganization.
(Added to NRS by 1971, 1005; A 1983, 1757; 1987, 1942; 1995, 495;
1997, 1006)
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